Why do companies exist?
“I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively which they could not accomplish separately. They are able to do something worthwhile — they make a contribution to society (a phrase which sounds trite but is fundamental).”
David Packard gave this response in an informal speech at the company he co-founded that wasn’t intended for publication. The year was 1960.
It’s a question worth revisiting now more than ever, As we rush to embrace new tech, intoxicated on its potential to transform business on multiple levels — to impact more people, in more ways, in more places, at a faster pace than ever before, we cannot underestimate the importance of discipline — the discipline of organizations to commit to cultivating good corporate character, defined by clear values, and to acting according to those values in all that they do to serve the greater good.
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